Mulkanoor Co-operative Society Performance.ppt

The PPT explains the financial performance of a Telangana-based Mulkanoor Co-operative banking society.

1. THE EVALUATION OF FINANCIAL
PERFORMANCE OF MULKANOOR CO -
OPEARATIVE RURAL BANK AND MARKETING
SOCIETY LIMITED
Under the guidance of E.Rahul Reddy
Dr.P.Surender M14MB002
Associate Professor
Of Management

2. Co-operative society:
A co-operative society is a enterprise formed directly by
association of users, applying within it the rule of
democracy and intended to serve both its members and
community

3. INTRODUCTION
Financial statement analysis:
The process of identifying the financial strengths and
weakness of the firm by properly establishing relationship
between the items of balance sheet and profit&lossaccount.
Financial statements are prepared primarily for decision
making.

4. MCRB&MS LTD., profile
RegisteredunderA.PAct1956.
ConvertedtoA.P.M.A.C.SAct1995intheyear1995.
Generalbodyconsistsof7200members
Managingcommitteeconsistsof15
President
Generalmanagersandemployees-117

5. Objective of the study
TheprimaryobjectiveofthestudyistoanalyzethefinancialperformanceofMulkanoorco-operativeruralbankand
marketingsocietyltd.,Thefollowingareitssubsidiaryobjectives.
Toexaminetheliquidityandsolvencypositionofthecompanyovertheperiodofthestudy.
Tostudytheoperationalperformanceandefficiencyofthecompanyintermsofutilizationoffundsandother
financialresources.
Tostudythebank’sabilitytomeettheirclientsoveraveryshortperiodoftime.
Tofindouttheproblemsindaytodayactivitiesandsuggesttheexpensestostudytheoutstandingpaymentstothe
employeesworkingintheorganizations.
Tostudythesourcesoffundsandapplicationsandsourcesofcashandtheirusesduringtheperiodfrom2009-10to
2013-14.

6. Data Methodology
For this study Mulkanoor co-operative rural bank and marketing society ltd.,
has been selected. The period of the study covers five years (2009-10 to 2013-
14).
The data Mulkanoor co-operative rural bank and marketing society ltd
have been collected mainly secondary sources like..
Administrative officer of the MCRB
The annual report and other reports.
Discussion with manager and employees about finance purchasers and
stores.
The MCRB library.

7. TECHNIQUES
usedtwotechniques:
Theyare:
i.Common-sizestatementanalysis.
ii.Trendanalysis.

8. INERPRETATIONS FOR COMMON -SIZE STATEMENTS
2012-2013:
The borrowings have shown a tremendous increase of Rs.135449 i.e., 64.02% it’s not good to
the society, why because the society pay more and more profits in the form of interest to the
debtors.
The absolute liquid assets (cash & bank balance) has registered raise of Rs.1829
The share capital, reserves has shown a favorable increase than the previous year. But the
profit has shown decreasing than the previous year.
The overall financial position of the society is not bad. It has grown by 20.62% than the
previous year.

9. 2013-2014:
The common-size balance sheet of the mcrb reveals that in year 2014 there has been increase in
current assets to the extent of Rs.171382 i.e., 10.8%. On the other hand long term liabilities have
increased by rs.38649. This clearly indicates that the management uses the long-term sources of finance
to purchase fixed assets.
The current assets have been increased by Rs.171382 i.e., 10.2%. on the other hand the current
liabilities have been decreased by Rs.36570 i.e.,22.23%.it sounds that liquidity position of the mcrb is
good.
The borrowings have shown a tremendous decrease of rs.243572, 7% it is very good to the society.
The share capital, reserves have shown a favorable increase than the previous year.

10. INTERPRETATION FOR TREND-ANALYSIS STATEMENTS
year Reserves(Rs. in ‘000) Trends % Increase/decrease %
2009-10 385718 100
2010-11 429159 113.7506 13.75059
2011-12 500736 126.7385 12.98796
2012-13 523246 147.6701 20.93155
2013-14 554321 164.0825 16.41241
Trends in reserves(base year 2009)

11. The average trend percentage of reserves 126.74%
There has been identical in the reserves from the previous year of around 12.98% lowest
being and highest is 20.93%
Mcrb and ms are unable to maintain the growth of reserves
Mcrb and ms have maintained growth of reserves in 5years period

12. TRENDS IN ADVANCES(BASE YEAR 2009)
year sharecapital(Rs.in ‘000) Trends % Increase/decrease %
2009-10 583546 100 -
2010-11 714885 121.22 21.23
2011-12 941038 145.51 24.32
2012-13 1053432 178.26
32.33
2013-14 1294034 201.25
23.12

13. Advances have been increasing throughout the period and it increased by 201.25% from
base year.
The average indices of the advances are 155.73% and they have shown increase in that
from 2009-2010
Profitability depends on advance more advances would collect of more interest and that
would lead to profitability of the society.
The society should keep check on the loans its advances and sees that they are secured.

14. LIMITATIONS :
The study is based on the data of past three or four years only.
The data for study mainly based on a single bank.
As majority of the customers are employees of the bank, they might be
biased in giving the information
The time period of the research was limited

15. FINDINGS:
Remunerative price for agriculture produce
Self confidence among farmers
Low rate of interest on loans
The bank is wealthy and have empathy towards society

16. CONCLUSIONS :
Payables are increased in this year so; the company has decreased their
liability, at the same time reserves are also increased
Borrowings are increased; this will be not good or organization
Fixed assets are increased to 53.03%,i.e.,4,58,701.
Current assets also increased to 46.96%., this increases wealth of the
organization
Overall company position is favorable in this year

17. The reserves at the beginning of review period 2009-2010 to 2012-2013 the reserves
were of Rs.3,39,091 and it increased to 5,56,389 in the last year
The society has been very much successful in mobilizing the deposits; it has been
following some positive policies by giving its member various options of depositing
their savings. The present deposits are 6,24,32,800The current assets are more than the
shareholders funds. It indicates that the current assets at the bank are financed from the
outsider’s funds.
The bank have utilized the total assets effectively .
The overall financial position of the society is good.

18. SUGGESTIONS:
In this chapter an attempt is made to offer some suitable suggestions to improve the
financial performance of “the Mulkanoor co-operative rural bank and marketing
society limited”
They are as follows:
The society should take some remedial measures to control its productive cost to
increase its profits
The society should decrease its unrecovered percentage of loans and advances. It
should study the credit worthiness of the member and based on this should advance
loans

19. If the society starts recording its Non-performing assets (NPA), then It could understand
the current financial position at the year end. It is necessary to control NPA’s as these are
productive
The return on investment of the society was recorded poor when compared to other
financial institutions. It is due to render of services to it’s member, even then it is to
increase the percentage slightly to survive and serve its members

20. Thank you